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Serving the Real Estate Industry Since 2007
By adm1n
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By adm1n
There is a certain amount of risk associated with any investment. It is inevitable that you will incur at least some loss as the trends of the market change. A countermeasure or a method that you can use to minimize your loss is to diversify your portfolio. This simply involves spreading out your investments among several asset classes.
Individuals choose to create diversity through a variety of ways – they buy gold, invest in opposing asset classes, and choose alternate investments. Diversification is important as it allows you to protect your portfolio as a whole. In the event a certain sector of the market is not doing well, another segment may be developing. This means that you will continue to make a certain profit on your ventures. Here is how you can diversify your portfolio:
You should augment your investments at regular intervals. People typically invest with a lump-sum – they invest a certain amount of money in the beginning of the venture and then do not invest anymore. A better way to invest is with financing a specific sum of money at regular intervals, irrespective of the current share prices. This is often known as dollar-cost averaging. You buy a greater number of shares when the prices are low and fewer shares when the cost is higher. This method allows you to neutralize the highs and the dips that are a result of market instability.
One of the key points of diversifying your portfolio is to spread your finances throughout a few sectors. An additional rule to accompany this diversification is to invest in what you know. Many people tend to invest in a sector that they are not familiar with simply because it is doing well. This, however, may prove to be harmful as you are not entirely acquainted with the proceedings of that segment. Instead, you should always invest in companies and sectors that you are accustomed to and may be even use. It is even more effective if these industries have very little correlation with one another. Then, what happens to one market will not necessarily affect another trade.
The above strategies will help you minimize the risk that is associated with financing. You, however, will still have to abandon an investment when certain ventures fail. It is often difficult for people to do as they have put in a great deal of time and effort in a venture. They also hope that the situation changes. You need to monitor how well or badly a company is performing. You should be able to read the signs that typically befall a company that is struggling or will go under. It is only by remaining informed will you be able to stay ahead of the game and prevent extreme losses.
There is no formula or applied theory that can truly help you determine how well your investments will do. This is why you should always seek a certain amount of security to avoid too great a loss. It is all about being smart with your ventures and making the right calls at the right time.
By adm1n
The majority of land investments that are made are typically to build personal residential units. This is because many people are unaware of the lucrative nature of such investments. It is generally believed that only people who are independently wealthy can afford to deal with ventures in land. This, however, is not necessarily true. Land investment can turn a great profit if used in the right way. Vacant land can serve a multitude of purposes, many of which can be quite profitable. Here are just some of the way that you can use unoccupied land:
There is always a demand for housing due to the rapid increase in population. This means that any vacant land that is suitable, is immediately an option to be used as a residential dwelling. This is especially true for urban areas. The majority of the U.S. population – over 82 percent – live in urban areas. There are also other options such as offices, health care centers, and even storage facilities. The demand for such structures continues to grow, therefore there are always organizations and entities that are willing to pay for the use of the land. An additional benefit of such building structures is that it requires very little involvement or maintenance on the part of the landowner.
As people have become more dependent on technology, their need for telecommunication facilities have grown. There are now more electronic devices being used in the United States than actual people. This means that there is a greater demand for cell services. Thus, land in certain locations may actually be perfect to be used to house cell towers. Wireless real estate companies such as TowerPoint Capital help landowners lease their land to cell tower companies or to other telecommunication firms. Depending upon the location of the property, the land may be quite valuable to certain wireless companies.
Land investment can also provide investment in the form of small farms. This can be in the form of vegetable gardens, vineyards, orchards, or even free range farms on a smaller scale. It is unadvisable to use your land for larger farming purposes. This is because the capital that is needed will far outweigh the profits that are made as an individual landowner. Instead, choosing smaller investments where smaller patches of land are used for agricultural purposes are more lucrative. The landowner has the option to choose to install the farming processes by themselves or simply rent out the land to other individuals. In the event that a more hands off approach is desired, it is best to simply outsource the agricultural work.
There are many ways that land can be used. As mentioned, one of the benefits to investing in land is that the rental options are essentially endless. There is little requirement for any actual interaction with the individuals or organizations renting or occupying the land. In this manner, there is very little effort to be made with such an investment. These are just some of the reasons why land investment is a simpler and more profitable venture than most.
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